2
Poorest of the Poor Live in third world Mostly landless Work for others, menial jobs Poorly educated Illiterate Superstitious Squatters who live in huts Almost no food Fragmented household Debt to relatives or lenders

3
Per capita incomes differ Democratic Republic Congo: $80/yr Switzerland: $38,330 Average person in Switzerland makes 500X more than in Mozambique. If compute purchasing power parity, difference between richest and poorest countries is 80X

4
Purchasing Power Parity 2003

5
Global Incomes

6
Distribution of World GNP (1989)

7
Human Development Index Measures quality of life High HDI –High income countries Low HDI –Low income countries HDI not perfectly correlated with income ox6Dacw/R0yJQ0c_8YI/AAAAAAAAAO4/jCG1CPQfBb0/s1600-h/HDI+map.JPG

14
Child Labor 250 million children work worldwide –22% of workforce in Asia –17% of workforce in Latin America –1/3 of children in sub-Saharan Africa Jobs –Agriculture –Textiles –Maids and services –Construction and manufacturing –Prostitution Many sold into debt bondage –To pay parent’s debt or as collateral –Advance on wages

15
U.S. Poor are Wealthy Poverty income – $9,359/yr Person at poverty line in U.S. – has higher income than 80% of people in the world 97% poor households in U.S. have color TV

22
Hunger in the U.S.A million people live in households that experience hunger –or the risk of hunger –Includes 13 million children –More than one in ten households in the United States (11.2 percent). 1/5 of U.S. food ends up in the landfill Source: Bread for the World Institute (2004)